Microsoft Borrows 3 Billion Dollars Per Month, a Company Truly Worth Trillions Would Not Do This
Published 2 days ago:
Over a decade ago IBM was "worth" more than Microsoft. Don't believe it? Here:
This article was published by a Microsofter (not too longer after he had 'left' the cult). Back then Windows was very dominant; Android had not gained the huge market share it now has.
Now, consider this very simple question: if Windows (and Office) "market share" fell from about 90% to barely 30%, how come Microsoft is now "valued" at 20 times more?
Additional questions: Did XBox thrive after 2011? Did buying Skype help Microsoft? Did taking over Nokia in 2011 work out OK? Did Windows conquer the phone?
No.
So none of this actually makes any sense.
See, this is why Microsoft is borrowing money like crazy and then pointing to its share price as "proof" that things are "OK".
Yesterday I was reminded that when companies "buy back" shares - or make a promise to that effect - it's likely illegal (but "legalised") and nobody checks that such promises are in fact fulfilled. It does con investors into putting people's pension pots in overvalued "ticker symbols". People "passively" participate because they entrust savings to shady businessmen who "invest" for them.
Worse yet, many Microsoft employees are now paid in "Shares" (or "Stock") instead of actual money, so they participate in inflating the company's shares and if they want to "withdraw" - or "cash in" those "tokens" to have "real money" "at hand" - they get taxed viciously. It is a "reverse incentive" that keeps the pyramid scheme running for longer. With someone like Cheeto in the White House - promoting fake coins after he had received bribes from "crypto bros" - don't expect a crackdown on this sort of thing. █
"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."